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Air Products and Chemicals
(NYSE:APD)
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Rating:60Neutral
Price Target:
$308.00
â–²(5.55% Upside)
Action:Reiterated
Date:07/01/26
The score is most constrained by weak recent profitability and volatility in free cash flow alongside a more leveraged balance sheet, plus a negative corporate event tied to large impairments/project exits. Offsetting these are constructive price trends (above major moving averages) and a strong earnings-call signal with raised guidance, margin improvement, and backlog-driven growth visibility, while valuation remains somewhat demanding at a ~31 P/E.
Positive Factors
Contract-driven recurring revenue
Air Products' business model centers on long-term on-site, pipeline and take-or-pay contracts that generate recurring revenues and predictable volumes. That structural contract base reduces revenue cyclicality, supports steady utilization of ASUs/pipelines, and underpins durable cash flow visibility over multiple years.
Negative Factors
Large impairment and project exits
The planned write-downs and project terminations materially consume capital and signal execution/selection challenges in clean-energy investments. These charges reduce tangible capital for growth, increase near-term earnings volatility, and could force redeployment or asset sales, constraining strategic optionality for months.
Read all positive and negative factors
Positive Factors
Negative Factors
Contract-driven recurring revenue
Air Products' business model centers on long-term on-site, pipeline and take-or-pay contracts that generate recurring revenues and predictable volumes. That structural contract base reduces revenue cyclicality, supports steady utilization of ASUs/pipelines, and underpins durable cash flow visibility over multiple years.
Read all positive factors
Air Products and Chemicals Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAir Products and Chemicals (APD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.29B
Dividend Yield2.92%
Average Volume (3M)1.23M
Price to Earnings (P/E)31.2
Beta (1Y)0.65
Revenue Growth3.69%
EPS Growth37.17%
CountryUS
Employees21,850
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)9.45
Shares Outstanding222,680,680
10 Day Avg. Volume1,459,612
30 Day Avg. Volume1,231,946
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)4.04
Price to Sales (P/S)5.05
P/FCF Ratio-16.14
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue6.43
Enterprise Value/Gross Profit20.11
Enterprise Value/Ebitda17.66
Forecast
1Y Price Target
$332.00Price Target Upside13.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)13.22
Revenue Forecast (FY)$12.75B
Air Products and Chemicals Business Overview & Revenue Model
Company Description
Operating globally, Air Products and Chemicals, Inc. (APD) is a prominent supplier of industrial gases, specialized equipment, and associated services. The company's diverse product range includes atmospheric gases such as oxygen, nitrogen, and ar...
How the Company Makes Money
APD primarily makes money by producing industrial gases and delivering them to customers under a few recurring, contract-driven models. (1) On-site supply and pipeline: For large customers (e.g., refineries, chemical plants, large manufacturers), ...
Air Products and Chemicals Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a broadly positive operational and financial performance: material YoY growth in EPS and operating income, margin expansion, a raised full‑year guide, meaningful backlog and large new electronics wins, and disciplined capital allocation with strong shareholder returns. Offsetting these positives are significant near‑term risks driven by the Middle East conflict (notably helium supply disruption and pricing headwinds), project‑level uncertainty (Darrow) and regional cost/run‑rate pressures in Europe. On balance the call emphasized resilience, project progress and prudent financial management while acknowledging key market uncertainties.Positive Updates
Strong EPS and Income Growth
Earnings per share of $3.20, up 19% year‑over‑year; operating income grew 19% YoY driven by improved volumes, productivity and favorable currency.
Negative Updates
Helium Supply Disruption and Pricing Headwind
Curtailment of helium supply from Qatar due to Middle East conflict created market tightness; helium pricing is a notable headwind (company expects roughly a 4% EPS drag in 2026) and average prices were down ~1% YoY. Management is drawing from a Texas storage cavern and using container fleet but notes limited ability to replace market shortfall if disruption is prolonged.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS and Income Growth
Earnings per share of $3.20, up 19% year‑over‑year; operating income grew 19% YoY driven by improved volumes, productivity and favorable currency.
Read all positive updates
Company Guidance
Air Products raised full‑year fiscal 2026 EPS guidance to $13.00–$13.25 (about 8%–10% growth at the midpoint) and expects Q3 EPS of $3.25–$3.35 (≈5%–8% y/y), while maintaining fiscal capital expenditures of roughly $4.0 billion and staying on track to cut capex by about $1.0 billion versus the prior year; management said EPS growth will come from pricing actions, productivity and new asset contributions alongside expected H2 volume improvements in refining, electronics and aerospace, but reiterated a helium price headwind (roughly a 4% EPS drag) with helium likely to bottom by year‑end. Operational and balance‑sheet metrics cited on the call included Q2 EPS of $3.20 (+19% y/y), operating margin of 23.7% (up >200 bps y/y), return on capital of 11.4%, net debt/EBITDA ≈2.2x, an effective tax rate target of ~18%, a ~$9 billion backlog (≈$2.5B traditional industrial gas) with $1.5–$2.0B expected to be added in the next six months, and $800 million returned to shareholders in H1.Air Products and Chemicals Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.46B | 12.04B | 12.10B | 12.60B | 12.70B | 10.32B |
| Gross Profit | 3.99B | 3.78B | 3.93B | 3.77B | 3.36B | 3.14B |
| EBITDA | 4.54B | 1.34B | 6.49B | 4.42B | 4.22B | 3.97B |
| Net Income | 2.11B | -394.50M | 3.83B | 2.30B | 2.26B | 2.10B |
Balance Sheet | ||||||
| Total Assets | 41.64B | 41.06B | 39.57B | 32.00B | 27.19B | 26.86B |
| Cash, Cash Equivalents and Short-Term Investments | 951.00M | 1.86B | 2.98B | 1.95B | 3.30B | 5.80B |
| Total Debt | 18.36B | 18.41B | 15.01B | 11.03B | 8.33B | 8.22B |
| Total Liabilities | 23.49B | 23.71B | 20.90B | 16.34B | 13.49B | 12.77B |
| Stockholders Equity | 15.65B | 15.02B | 17.04B | 14.31B | 13.14B | 13.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.11B | -3.77B | -3.15B | -1.42B | 303.70M | 877.70M |
| Operating Cash Flow | 4.12B | 3.26B | 3.65B | 3.21B | 3.23B | 3.34B |
| Investing Cash Flow | -5.07B | -6.58B | -4.92B | -5.68B | -3.86B | -2.73B |
| Financing Cash Flow | 379.00M | 2.21B | 2.62B | 1.37B | -1.00B | -1.56B |
Air Products and Chemicals Technical Analysis
Positive
291.81
Price Trends
289.80
Positive
287.12
Positive
271.66
Positive
Market Momentum
-2.62
Negative
41.14
Neutral
30.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 291.81 is above the 20-day moving average (MA) of 280.74, above the 50-day MA of 289.80, and above the 200-day MA of 271.66, indicating a bullish trend. The MACD of -2.62 indicates Negative momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.
Air Products and Chemicals Risk Analysis
Air Products and Chemicals disclosed 19 risk factors in its most recent earnings report. Air Products and Chemicals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Air Products and Chemicals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $240.06B | 34.35 | 18.51% | 1.41% | 4.96% | 9.22% | |
70 Outperform | $78.41B | 37.52 | 21.70% | 1.01% | 4.90% | 0.42% | |
70 Outperform | $84.92B | 32.60 | 58.23% | 0.98% | 3.90% | -1.60% | |
67 Neutral | $18.31B | -757.28 | -0.16% | 1.74% | -22.51% | 63.46% | |
65 Neutral | $27.04B | 17.23 | 31.80% | 2.71% | -3.94% | 18.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $65.29B | 31.17 | 13.68% | 2.92% | 3.69% | 37.17% |
* Basic Materials Sector Average
APD
Air Products and Chemicals
293.18
13.39
4.79%
ECL
Ecolab
278.61
8.88
3.29%
PPG
PPG Industries
121.29
7.90
6.97%
SHW
Sherwin-Williams Company
344.32
-7.69
-2.19%
DD
DuPont de Nemours
135.64
47.62
54.10%
LIN
Linde
518.94
48.52
10.31%
Air Products and Chemicals Corporate Events
Business Operations and StrategyFinancial Disclosures
Air Products Exits Key Clean Energy Projects Amid Impairments
Negative
Jun 30, 2026
On June 26, 2026, Air Products decided to exit its planned Louisiana Clean Energy Complex for low-carbon hydrogen and ammonia, a green hydrogen facility in Casa Grande, Arizona, and other smaller clean energy distribution projects after determinin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.